11. Income Taxes

12 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

11. Income Taxes

Income Taxes

The reconciliation of the provision for income taxes at the federal statutory rate of 35% to the actual tax expense for the applicable fiscal year was as follows:

	2013					2012
		Amount		% of Pre-tax Income			Amount		% of Pre-tax Income
Computed “expected” income tax	$	182,300		35.0	%	$	21,700		35.0	%
Surtax exemption		—		—			(12,400	)	(20.0	)
Research and development credits		(30,700	)	(5.9	)		(11,300	)	(18.3	)
Other, net		(27,200	)	(5.2	)		(2,200	)	(3.5	)
Income tax expense (benefit)	$	124,400		23.9	%	$	(4,200	)	(6.8	%)

Deferred tax assets and liabilities consist of the following:

		2013			2012
Deferred tax assets:
Amortization of intangibles	$	146,100		$	149,700
Various accruals		49,600			44,800
Other		53,400			55,100
		249,100			249,600
Deferred tax liability:
Depreciation of property and amortization of goodwill		(56,300	)		(43,400	)
Net deferred tax assets	$	192,800		$	206,200

The breakdown between current and long-term deferred tax assets and liabilities is as follows:

		2013			2012
Current deferred tax assets	$	86,600		$	70,200
Long-term deferred tax assets		162,500			179,400
Long-term deferred tax liabilities		(56,300	)		(43,400	)
Net long-term deferred tax assets		106,200			136,000
Net deferred tax assets	$	192,800		$	206,200

ASC No. 740 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC No. 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. As of June 30, 2013 and 2012, the Company did not have any unrecognized tax benefits related to various federal and state income tax matters.

The Company’s policy is to recognize interest and penalties on any unrecognized tax benefits as a component of income tax expense. The Company does not have any accrued interest or penalties associated with any unrecognized tax benefits. The Company is subject to U.S. federal income tax, as well as various state jurisdictions. The Company is currently open to audit under the statute of limitations by the federal and state jurisdictions for the years ending June 30, 2010 through 2012. The Company does not anticipate any material amount of unrecognized tax benefits within the next 12 months.